May Idea of the Month: “Busted Growth Revival Story”

by Travis Johnson, Stock Gumshoe | May 17, 2013 5:30 pm

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Source URL: https://www.stockgumshoe.com/2013/05/may-idea-of-the-month-busted-growth-revival-story/


16 responses to “May Idea of the Month: “Busted Growth Revival Story””

  1. ytse says:

    Money never stops buying happiness. I Bought LOV. As you memtioned Spark Networks on the second day of the Investment Congress. I picked up LOV shares. See how this will work out.
    Thanks, Travis.

  2. cooleenman says:

    I have looked at rosetta stone kiosks in malls and airports and they seem to do very little business. I wondered how they continued to survive Charles O’Malley

    How do you feel about the 3D printer companies that a MOTLEYre being promoted by

  3. ytse says:

    Charles:
    If you want to know or learn more about DDD.
    Please go to: http://www.citronresearch.com
    Search
    stock Ticker: DDD
    on 2-14-13, Mr. Left had 14 pages about DDD. It will raise your blood presure.
    I am a fan of Mr. Left. He is about 87% right.

  4. joshsorensen says:

    I started watching RST on 1/31/12 @ $7.77 a share thanks to one of the Gardner brothers. Since then the stock is up 118%. With that much of a rise in a little over a year, do you still consider this a “value”?

    I have continued to watch the stock, but of course I never pulled the trigger on a buy to make all that money, lol! I am just looking for opinions on aspects of value after that much of a rise.

  5. Alan Harris says:

    Im not so sure about this transition to subscription. The old DVD’s were personal possessions…..they encouraged brand and method loyalty coz you couldnt ask for your money back and switch to some other method ! The subscription method allows people to ‘graze’. And the best way someone can encourage a herd to migrate, is by offering an ‘own brand’ product for much less. My guess is they will do v well initially while there’s little competition…..but as competition increases (as it must), RST’s profits will be cut to ribbons. But the real ‘not so long term’ risk, is the smart phone. It really wont be long before software allows you to say ‘ Hello my name is Fred…….’ and have repeated back (perhaps into earphones or some form of Google Glasses), in any beginner level language you like. In fact the listeners would choose their preferred language, so that a Chinese speaker could address the UN assembly in dozens of languages simultaneously (a job presently done by human interpreters). When that’s a reality, you wont be able to give RST courses away at a yard sale.
    I already have an app that will translate my typing into multi lingual audio. No its not perfect, but practice makes perfect….and boy are those software engineers practicing.

  6. northcoast42 says:

    The future may indeed be one of smartphones and translation software. I guess, when your battery dies so does your ability to communicate. Oops! The technology already exists but that future isn’t quite here…yet. The actual ability to speak and understand has benefits beyond reliance on a “smart”phone. However; even if translation technology didn’t exist, those people relying on their “smart”phones would probably not be RST clients anyway. Learning a language takes desire not to mention effort. Those who buy a language program are people who want to actually learn…I would hope. RST caters, now and in the future, to a clientele of like-minded individuals who purchase because they want or need to learn beyond what a “smart”phone translation can give them. Will that number will be enough to sustain the current RST busness model? Who can say with any certainty. It seems to be working now. In the near term, RST could do well in an increasingly globalized world. ..and they may be able to adapt to a future paradigm shift as they seem to have adapted to the current paradigm.

  7. pkammit says:

    Hi all, did anyone buy this stock? I got in at 17 a while ago and a bit disappointed with yesterday’s announcement and the subsequent dip to 15. Is this a buying opportunity or is it better to just wait it out for the price to work it’s way back up?

  8. pkammit says:

    Thanks for the quick reply Travis! I will wait for price to stabilize before adding more.

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